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Or rather than worrying the seller about which lender you will be using, a party could simply claim they were buying with cash but show up the day before closing with a mortgage commitment.
Of course you would need to have documentation that there could have been cash available. The guy who bought my house did that somehow which is what caused my listing agent to push acceptance of his offer. “Cash”.
The 5+ figure NC Due Diligence fees take a fair amount of gaming out of the deal. The more I see it, the more I like it.
Cash. Mortgage. Dogecoin. Whatever.
Put $80,000 non-refundable cash into the sellers' pockets and if a buyer is playing stupid games it can get costly, for sure.
Depends who’s doing the gaming. DD allows sellers to hide negative features of the property since upon discovering them the potential buyer has two choices. Accept the hidden problems or lose tens of thousands of dollars, then take a risk all over again on the next property. And when the disclosure forms ask for general facts sellers are increasingly finding ways to check the boxes for “no representation”.
Depends who’s doing the gaming. DD allows sellers to hide negative features of the property since upon discovering them the potential buyer has two choices. Accept the hidden problems or lose tens of thousands of dollars, then take a risk all over again on the next property. And when the disclosure forms ask for general facts sellers are increasingly finding ways to check the boxes for “no representation”.
Of course, buyers are smart to hire agents who care enough to look at the condition of the property.
That helps reduce surprises.
No Rep takes very little creativity. It is a good strategy when buyers are making sight-unseen offers and pull the disclosures apart to sue when they get buyers' remorse.
The 5+ figure NC Due Diligence fees take a fair amount of gaming out of the deal. The more I see it, the more I like it.
Cash. Mortgage. Dogecoin. Whatever.
Put $80,000 non-refundable cash into the sellers' pockets and if a buyer is playing stupid games it can get costly, for sure.
We don't have that here, and so far, I'm glad about that..... for buyers, who already have it pretty tough in this market.
The 5+ figure NC Due Diligence fees take a fair amount of gaming out of the deal. The more I see it, the more I like it.
Cash. Mortgage. Dogecoin. Whatever.
Put $80,000 non-refundable cash into the sellers' pockets and if a buyer is playing stupid games it can get costly, for sure.
^^^ THIS ^^^
Experiencing this was eye opening... there was never any question about games... it made me feel super confident as a seller... on the buy side it made me be sure this was the house.
Experiencing this was eye opening... there was never any question about games... it made me feel super confident as a seller... on the buy side it made me be sure this was the house.
The nutty thing is sellers/agents who are demanding worthless appraisal gap addenda, as if someone will walk away from $40,000--$100,000 because the place doesn't appraise.
Heck, if my house appraises for $20,000 under contract, and you are willing to walk away from $50,000, you weren't qualified, or weren't represented by a pro, or both.
So, I have your $50,000 in my pocket and immediately go for a qualified and educated buyer.
Agents have a REASON for not liking national lenders: Phone trees where you can't reach real decision makers if things start to go sideways with the loan documents.Loan agents who seem really nice but don't make the decision. They send it on to Underwriting, and you can't talk to them. You have to wait.
EVERY last minute problem or delay we have ever had has been with a national lender with an office in Phoenix and a phone tree answering system that no one answers if they don't have good news.
My local lender... I have his cell phone, and his address. He doesn't ghost me. You should try a lender your agent recommends who is local where you're buying, because your agent trusts him for a reason, and other listing agents considering your offers will also. They know about your credit hits, and they know how to take care not to hurt your score.
Rocket makes people groan. You don't want that.
I am an MLO with Rocket Mortgage. Because I have a background as a Realtor and Appraiser I understand the system and its problems. I monitor every loan I have initiated on line (as can the borrower and Realtor), the borrower has my cell number and email address and can contact me any time. I also keep everybody informed.
Agents have a REASON for not liking national lenders: Phone trees where you can't reach real decision makers if things start to go sideways with the loan documents.Loan agents who seem really nice but don't make the decision. They send it on to Underwriting, and you can't talk to them. You have to wait.
EVERY last minute problem or delay we have ever had has been with a national lender with an office in Phoenix and a phone tree answering system that no one answers if they don't have good news.
My local lender... I have his cell phone, and his address. He doesn't ghost me. You should try a lender your agent recommends who is local where you're buying, because your agent trusts him for a reason, and other listing agents considering your offers will also. They know about your credit hits, and they know how to take care not to hurt your score.
Rocket makes people groan. You don't want that.
I agree with you about national lender's retail division.They are slow, paid little and charge a high fee.
HOWEVER, keep in mind (you may already know) that your local lender may indeed be a hybrid lender. A mortgage broker / banker who does use Rocket Mortgage's wholesale division. In essence a national lender.
If your local lender is a local bank or credit union then yes you're 100% correct.
If not, that pre-approval letter they give you may be with Rocket, UWM or other large wholesale lenders. Usually the letter just includes the loan program, rate, loan amount, and credit score and assurance their income and debts were reviewed and will pass.
Sometimes one of the wholesale lenders offers a monthly special and your customer gets a better rate or pricing than the same company's retail division. Now that is a head-scratcher but it occurs.
It always depends on the person you work with. Someone who like s their job, has good ethics, and wants to maximize their potential as opposed to those who are texting friends or checking social media all day.
A national lender with a call center sounds like a nightmare. I've heard horror stories with Wells and B of A too. Kind of like calling your cell phone provider for something so trivial but ends up taking 30-60 minutes.
Last edited by frankrj; 05-20-2022 at 06:37 AM..
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